7 months ago
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In a letter addressed to US Judge Richard A. Jones for the Western District of Washington, former Binance CEO Changpeng Zhao, commonly known as “CZ,” expressed his remorse and apologized for what he called “poor decisions” made during his tenure as the head of the cryptocurrency exchange.
The letter was filed on Tuesday, ahead of his sentencing for charges related to anti-money laundering and sanctions violations.
Former Binance CEO Apologizes For “Poor Decisions”
CZ began the letter by expressing gratitude to the court and the Probation Office for their time and consideration throughout the legal process. He acknowledged the probation officers for allowing him to speak candidly and understand him as a whole person.
Changpeng Zhao accepted full responsibility for his actions and admitted that he should have prioritized implementing compliance changes at Binance from the outset. He expressed regret for failing to establish necessary compliance controls.
The former CEO highlighted that under his direction, Binance has implemented the most stringent anti-money laundering controls among non-US exchanges since 2022.
CZ emphasized the rapid growth and the challenges faced in keeping the platform afloat during its early years, eventually building a secure product that has safeguarded users and their funds.
Moreover, CZ apologized to his family, friends, Binance employees, and the wider crypto community, acknowledging the significant impact his actions have had on their lives.
Binance’s former CEO acknowledged the significant changes in his life, noting that he is no longer Binance’s CEO and has accepted this new reality. He expressed optimism about making positive impacts in other areas in the future.
Reflecting on his unconventional path, CZ shared his immigrant background and self-funded college education. In those cases, he mentioned his previous failed startups and his commitment to returning investor money. He stated that he voluntarily surrendered and took responsibility in this case to resolve the issue before the court.
CZ’s Vision Beyond Binance
Looking ahead, CZ expressed his interest in cryptocurrency’s potential to provide inclusiveness and equal opportunity worldwide. He mentioned his intention to explore opportunities in biotech, particularly focusing on funding research labs to cure diseases and providing medical access using blockchain technologies.
CZ also emphasized his commitment to assisting underprivileged youth through various worldwide educational and living standards programs.
It is worth noting that the US Department of Justice (DOJ) has recommended a three-year prison sentence for CZ, alleging that his “deliberate violation” of US laws was an “integral part” of Binance’s business strategy.
The DOJ claimed that Binance “aggressively” targeted US customers without adhering to necessary legal standards, allowing illicit financial flows.
The DOJ memo described CZ’s actions as a calculated decision to disregard US laws for personal gain. The prosecution further stated that CZ bet on not getting caught and anticipated that the consequences would not be as severe as the crime committed.
Currently, the exchange’s native token BNB is trading at $601 after a substantial 14% price recovery in the last week alone.
Featured image from Bloomberg, chart from TradingView.com
